ECO2502H1F Advanced Monetary Theory

The major theme is the analysis of the role of money, banks, and other payment mechanisms in facilitating the process of exchange. The models covered in this course study economies with explicit frictions for trading goods and services. In this environment, money, banks, and other payment mechanisms play a role in facilitating trade and arise as equilibrium outcomes. The effects of monetary and banking policies will be addressed in the framework of these models.